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Finally get my first order and PayPal immediately shuts me down.
One minute after I finally got my first order (this Saturday Oct 9) in my store, I get an email from PayPal that the money was put on hold because it was a 'significant change in the account activity'. A minute after that an email requesting more information. After I logged onto my PayPal account, I checked and provided all the info they asked of me.
Sunday morning another PayPal email that they are initiating closure of my account. I follow the advice in the email where it says I can appeal and send that in. Today they replied that the decision was for 'security reasons' and that it was irreversible anyway (why tell me how to appeal then??).
I have provided them with all information they requested and it's like you're talking to a wall. They just hide behind the algorithm that for some reason flagged my first incoming payment as a problem and I can never use PayPal again. Which effectively kills my store here, which was only just starting out.
The order that was placed was shipped out this morning, even though I will likely never see the money for it. The buyer had a very good feedback score on the site, so I would be very surprised if that was linked to it, but PayPal refuses to give me any information at all about why I am getting blocked.
Let this be a warning: at whatever moment in time, PayPal might flag one of your transactions, and there is nothing you can do against it. You will just be shutdown and it is very, very frustrating after all the work I put into cataloging the parts. Luckily I had only done about 10 to 15% of that work... no point in continuing now.
Sunday morning another PayPal email that they are initiating closure of my account. I follow the advice in the email where it says I can appeal and send that in. Today they replied that the decision was for 'security reasons' and that it was irreversible anyway (why tell me how to appeal then??).
I have provided them with all information they requested and it's like you're talking to a wall. They just hide behind the algorithm that for some reason flagged my first incoming payment as a problem and I can never use PayPal again. Which effectively kills my store here, which was only just starting out.
The order that was placed was shipped out this morning, even though I will likely never see the money for it. The buyer had a very good feedback score on the site, so I would be very surprised if that was linked to it, but PayPal refuses to give me any information at all about why I am getting blocked.
Let this be a warning: at whatever moment in time, PayPal might flag one of your transactions, and there is nothing you can do against it. You will just be shutdown and it is very, very frustrating after all the work I put into cataloging the parts. Luckily I had only done about 10 to 15% of that work... no point in continuing now.
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I see over and over that these are automated algorithms and when humans at PayPal are reached, they don't see why the account was closed either. Reasons appear to possibly include:
1. Having two accounts
2. One of the IPs involved is linked to fraudulent activity (have you checked to see if your ID has been hacked recently?)
3. Sending money to yourself from one account to another
https://puntofisso.medium.com/paypal-closed-my-account-with-no-explanation-it-could-happen-to-you-6ff0ba4ea95f is an interesting read.
On the plus side, every case I've read it appears people DO get their money after a polite fight, but I have yet to see anyone get their account reopened...? They tend to have to ecreate a new one, losing you your history. :-(
Another read: https://pocketsense.com/can-do-paypal-closed-account-8314954.html
Good luck!!!!!!!!
One last thing, a particularly good read: https://mywifequitherjob.com/why-paypal-freezes-or-limits-accounts-and-how-to-prevent-this-from-happening-to-you/.
These appear to be reasons per PayPal their algorithm will freeze an account or close it:
You’ve received an abnormally large amount of money in your account that is way above your average
Someone has filed a complaint to Paypal about your business
A series of chargebacks have been placed against your account
Your website has questionable content
You are in violation of Paypal’s use policy. For example if you sell drugs or anything illegal, you may get banned
Your account information is not up to date or your account is not fully verified
Someone has logged into your Paypal account from a strange location.
Your credit score is low or something with your background history makes you a higher risk customer
They have detected fraudulent activity on your account.
@Calibrick: it was my first and only PayPal account, especially created for the purpose of using it here. Conform PayPal rules, it was/is a business account, as you are normally not allowed to use a personal account for online sales.
In their communication they seem to state I am forever banned from using PayPal. So creating a new account won't be a solution I'm afraid.
From what I can see and know, none of the reasons you listed apply in my situation. I've argued the same to PayPal, but they hide behind 'algorithm says security risk, sorry we can't do anything'.
Hoddie had suggested Stripe, which I hear many talk about here (in a positive way)... talk to the BO admin. If you have performance from other marketplaces to kind of cement your credentials, take a screen shot of them and pass them to him. Perhaps he can make an exception to the PayPal rule for you in light of the well-known PayPal craziness?
Unfortunately, I am not on other marketplaces for Lego, so I cannot prove I'm legit in that way either...
If you google about this issue, you find lots of complaints about money being put on hold, but closing an account on its first transaction??? I keep telling myself it must be some kind of mistake but at PayPal they refuse to even look into it, because 'computer says no' (mandatory IT-crowd reference!)
The only thing I can think of now, is that the IP address of my VPN has somehow been linked to fraud with PayPal at some point, and that that has tainted me as well. But I doubt that.
Maybe it was something with not being 100% verified... even though I didn't get any emails from them saying I still had to complete something, and also, I would expect the configuration of the account, linking it to my store here, would not have worked okay.
Meanwhile, my buyer received the package and was happy with it. Got a good feedback.
Not sure where to go from here now though...
If you haven't tried already, you could call PayPal and explain. I'm sure there'll be another way to set up a PayPal account and steadily change it to your preferred details. It might involve you getting a different bank account, not using your full name, using a different email address, etc. If it's their automatic systems that are blocking you, there must be a way to avoid that. If all else fails, you could speak to your local consumer authority, they may be able to intervene on your behalf.
But trying to circumvent a block by not using my full name or other email and bankaccount sounds like a sure-fire way to get blocked again if ever found out.
I was considering invoking my 'delete me' right based on the European GDPR laws. But I don't trust PayPal at all to actually delete my data, I'm pretty sure they would keep me on a blacklist somewhere.
I'll let it (and myself) cool down a few days...
Then I'll think about what I should do next.
Good luck.
The buyer has now also confirmed to PayPal that the transaction is complete and okay. Which led to an (automatic I guess) email from PayPal that the money has been released. But when logging in, I can't transfer it, some unknown error. Small steps...
Color me skeptical at the very least... also happy that they reconsidered of course, as I didn't think this was still an option. However, this does not give me a lot of confidence in PayPal as a reliable payment provider.
Before I reopen my store, I want some reassurance from them that everything is okay now, and that it will not be blocked again upon a second order in my store...
@Jiries, don't you build your fees into your sell costs? Then, in aggregate, sellers nearly always come out ahead. While you may lose a fee on a teeny order, larger orders more than make up for it.
I had received 2 official emails stating that the decision was final, nothing could be done, I could never again use the platform...
But like I reported, one week after that, I got an email telling me my info was reviewed and my account was reinstated. So even though you get mails that sound very final, it can still turn around unexpectedly.
My sales are still limited to that one time, because I closed my store for updating inventory since then. And I'm still counting and adding new stuff...
I just hope that as soon as I reopen, I won't get the same trouble when a new sale is done, because there is so much time inbetween... my trust in paypal is quite low as I'm sure everyone can understand.
Are you using the PayPal app or a web front end ? Having the app, combined with 2FA, might get them more assurance that you are where you say you are.
Always ship orders with tracking. That will help to paint a picture that you are in residing in the country where the order shipped from.
The first payment that came to me and they shut my account down.
Yeah every year I spent thousands through PayPal.
The only thing I cannot give PayPal is photo ID because I don’t have it I don’t drive so therefore don’t have a driving license and I don’t go Abroad so therefore I don’t have a passport.
Can't you get photo I'd without a DL? Over here we have to show photo I'd to buy alcohol, tobacco, enter some clubs, vote etc.
Because PayPal is a company with certain rules. If you follow those rules, you can get along well with them. Your ability to make use of PayPal is not a right, it is a service that they make available to those willing to abide by their rules.